Mo. Code Regs. tit. 16 § 20-2.056
Current through Register Vol. 49, No. 9, May 1, 2024
Section 16 CSR 20-2.056 - Lump-Sum Cash Payout of Retirement AllowancePURPOSE: The proposed amendment increase the value of reserve amount for accounts eligible to apply for a lump-sum payout and correct a statutory reference within the rule language.
PURPOSE: This rule establishes the circumstances under which a member or former member may receive a lump-sum cash payout in lieu of a monthly benefit, as provided for in section 70.660.[1]2(4), RSMo regarding optional retirement elections.
(1) A member or former member who is entitled to a retirement allowance, as defined in section 70.655 or section 70.765, RSMo, may, in accordance with section 70.660.2(4), elect to receive a lump-sum cash payout at retirement that is the actuarial equivalent of the retirement allowance otherwise payable, provided that the value of the reserve at the time of payment is less than twenty thousand dollars ($20,000).(2) The election to receive a lump-sum cash payment must be made before the first payment of a retirement allowance becomes due and payable, but not thereafter.(3) The reserve value of the lump-sum payout shall be calculated at the time of the member or former member's retirement.(4) A member or former member electing to receive a lump-sum cash payout pursuant to the provisions of this rule shall do so by electing payment under Option "D" on the LRS-9, "Election of Allowance Option" form. AUTHORITY: section 70.605.21, RSMo 2000.* Original rule filed Oct. 17, 2001, effective May 30, 2002. Amended by Missouri Register October 1, 2019/Volume 44, Number 19, effective 11/30/2019*Original authority: 70.605, RSMo 1967, amended 1974, 1992, 2000.